REG - Lords Group Trading - Completion of Branch Acquisition

Lords TradingAnnouncement

01/04/2022 07:15

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RNS Number : 8639G  Lords Group Trading PLC  01 April 2022

 

 For immediate release  1 April 2022

 

 

Lords Group Trading plc

('Lords', the 'Company' or the 'Group')

 

Completion of Branch Acquisition

 

Lords, a leading distributor of building materials in the UK, is pleased to
announce that, further to its announcement of 15 February 2022, the Group's
subsidiary, Hevey Building Supplies Limited ('Hevey'), has acquired a
Buildbase branch, from Grafton Merchanting GB Limited previously part of its
timber and building materials business (the 'Acquisition'). The Buildbase
branch purchased is a single site located in Sudbury, Suffolk (the 'Sudbury
Branch').

 

The Acquisition offers additional expansion for the Sudbury Branch and the
wider Lords Merchanting division across product range, acquired customers and
digital presence whilst also further enhancing Hevey's growing East of England
presence.

 

The total gross consideration payable of £2.2 million will be met from the
Company's existing cash resources.  The Sudbury Branch generated revenues of
£5.1 million and adjusted EBITDA of £0.5 million in the year to 31 December
2021.

 

The Acquisition will see all employees of the Sudbury Branch transferred into
the employment of the Group.

 

Shanker Patel, Chief Executive Officer of Lords, said: "The acquisition of
one of Grafton Merchanting's timber and building materials businesses
continues the delivery of the Group's M&A strategy set out at IPO, whereby
we will look to grow our regional presence through acquiring businesses that
are leaders in their local markets.  As a result of the acquisition, Hevey
Building Supplies will further enhance its growing presence in the East of
England.

 

"We are delighted to welcome our 15 new colleagues to the Group and look
forward to integrating them into our strong, family culture, a key cornerstone
of our success."

 

- Ends -

 

FOR FURTHER ENQUIRIES:

 

 Lords Group Trading plc                                                     Via Buchanan
 Shanker Patel, Chief Executive Officer                                      Tel: +44 (0) 20 7466 5000
 Chris Day, Chief Financial Officer

 Cenkos Securities plc                                                       Tel: +44 (0)20 7397 8900
 Ben Jeynes / Max Gould / Dan Hodkinson (Corporate Finance)
 Alex Pollen (Sales)

 Buchanan Communications                                                     Tel: +44 (0) 20 7466 5000
 Henry Harrison-Topham / Stephanie Whitmore / Kim Looringh-van Beeck / Kiki  LGT@buchanan.uk.com (mailto:LGT@buchanan.uk.com)
 Norman

 

Notes to editors:

Lords is a specialist distributor of building, plumbing, heating and DIY
goods.  The Group principally sells to local tradesmen, small to medium sized
plumbing and heating merchants, construction companies and retails directly to
the general public.

 

The Group operates through the following two divisions:

 

·     Merchanting: supplies building materials and DIY goods through its
network of merchant businesses and online platform capabilities.  It operates
both in the 'light side' (building materials and timber) and 'heavy side'
(civils and landscaping), through 30 locations in the UK.

 

·     Heating and Plumbing: a specialist distributor in the UK of heating
and plumbing products to a UK network of independent merchants, installers and
the general public.  The division offers its customers an attractive
proposition through a multi-channel offering.  The division operates over 15
locations enabling nationwide next day delivery service.

 

Lords was established over 35 years ago as a family business with its first
retail unit in Gerrards Cross, Buckinghamshire.  Since then, the Group has
grown to a business operating from 45 sites.  Lords aims to become a £500
million turnover building materials distributor group by 2024 as it grows its
national presence.

 

Lords was admitted to trading on AIM in July 2021 with the ticker LORD.L.
 For additional information please visit www.lordsgrouptradingplc.co.uk
(http://www.lordsgrouptradingplc.co.uk/) .

 

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